Question 1

What is EMI?

Accepted Answer

Equated Monthly Instalment — the fixed monthly payment that repays a loan with interest over a chosen tenure.

Question 2

Formula used

Accepted Answer

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is principal, r is monthly rate and n is number of months.

Question 3

Does this apply to home, car and personal loans?

Accepted Answer

Yes — the amortisation formula is identical; only the typical rate and tenure differ.

Home loan EMI calculator